Factors that affect Auto Insurance Policy Premium

There are different factors which can affect the auto insurance premium. Those factors are called risk factors.

• Age: Age is one of the major factors for auto insurance. Below the age of 25 have greater risk of being in an accident than the over age 25.
• Gender: According to statistical records, women have safest records than the men.
• Marital status: The married person will pay lesser premium than the single person.
• Geography: The people who are living in less traffic or no traffic areas, they will pay less on insurance. But the people who are living in congested cities with more traffic they will spend more on insurance.
• Occupation: The insurance companies will take the occupation also as a risk factor. Why because the news paper delivery person will have greater risk than the personal banker sitting at their desk all day.

There are many factors which can affect the auto insurance premium. Some of the factors are controllable and some factors are uncontrollable. The age, gender, marital status, geography, and occupation are uncontrollable factors.